Hi Ace, I think what the market is concerned about is not the...

Hi Ace, I think what the market is concerned about is not the funding. Its about the credit quality of the loan, credit card and lease portfolios. If defaults spike then the capital will be wiped out very quickly. Look at the last set of accounts for loan losses.

Unfortunately, the impact of the virus cant be underestimated. 88,000 people lost/were stood down from there jobs at Qantas alone yesterday. The multiplier effect of this is about 6. Not to mention all the retail staff at airports. It goes on and on.

I think this will get really ugly. Its no fault of management and I think they have probably done all the right credit checks and credit scoring when the loans and leases were made. This Downturn is unprecedented in recent times.

Management are powerless at this point to do anything, no matter how qualified and good they are. It comes down to the credit managers and loan portfolio spread to different industries and how those industries are/will be impacted by this downturn.

Comments from the company re which industries they are exposed to would be helpful. This may not be possible for consumer lending.

GLTA

DYOR